The Dogecoin-inspired Shiba Inu (SHIB) token has drawn attention on the cryptocurrency market for its high burn rate, which has purportedly just topped 50% growth. Due to the overall insignificance of the burnt volume, the influence on the token’s value is still minimal despite this increase.
Burning is a process used on the cryptocurrency market to remove tokens from circulation permanently. This lowers the overall supply and may make remaining tokens more scarce. Although burning might possibly increase a token’s price, the amount of tokens burnt will mostly determine this.
Shiba Inu’s burn rate has increased significantly, although the amount burned is still little in comparison to the overall amount of SHIB in circulation. Additionally, the data suggests that merchants are not offering sizable amounts on burn addresses, which supports the idea that the present burn rate is not expected to have much impact on the value of SHIB.
The scenario for Shiba Inu is worrying in terms of pricing. SHIB has not been able to identify a source of purchasing power to trigger a price rebound despite a surge in network activity. The token is still consolidating at the moment, hovering around $0.000008.
Any prospective price increase for SHIB may be constrained by the lack of considerable purchasing power and the little amount being burnt. A significant rise in token burning along with a significant increase in buying power would be necessary for any significant price change.
The SHIB community has long predicted that the token will follow the route of Dogecoin, which had significant price increases early this year. The prediction came true, but not in the way that everyone had hoped.
